Open Close

UK’s Imagination Technologies acquires US-based MIPS in $60m deal

British multimedia technologies group Imagination Technologies Group plc (LON:IMG) has inked a USD60m (EUR46m) deal to buy US-based firm MIPS Technologies Inc (NASDAQ:MIPS), a provider of processor architectures and cores for digital home, networking and mobile applications.

The agreement envisages the purchase of MIPS’s operating business and 82 of its patent properties, as well as license rights to the remaining 498 patent properties, the buyer said today. The target will sell the remaining patent properties in a separate USD350m deal to Bridge Crossing LLC.

Imagination Technologies will finance the transaction with cash on hand and expects to complete the purchase in the first quarter of 2013. Excluding one-off items, the buyer projects that the deal will build on its earnings in fiscal 2014.

The takeover is now contingent on the completion of MIPS’s patent portfolio sale to Bridge Closing, as well as on regulatory clearance and shareholder approvals.

The acquisition will result in the combination of two of the top five semiconductor design IP vendors globally, the buyer commented. It will benefit the clients and partners of both parties and open new growth opportunities.

The move will also reinforce Imagination’s standing in embedded markets, including mobile and TV/set-top-box and foster its presence in the networking and infrastructure markets, the buyer said. It will also complement the company’s central processing unit (CPU) technologies and create a major player in the CPU development and licensing industry.


If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.